Dhaka stocks opened the week lower today (25 October) as persistent selling pressure dragged down the benchmark index, despite modest gains in banking stocks amid bargain hunting.
The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), fell 18 points to close at 5,432, while the blue-chip DS30 index declined 1.66 points to 2,101.
Market breadth remained negative, with 283 issues declining, 64 advancing and 38 remaining unchanged.
Turnover, a key indicator of trading activity, dropped 14% to Tk430 crore compared with the previous session. The market capitalisation also declined by around Tk2,700 crore.
According to EBL Securities' daily market review, the market resumed trading on a lacklustre note after the Durga Puja holidays, as concerns over corporate earnings and dividend declarations weighed on investor sentiment. Rising global energy prices amid renewed conflict in the Middle East further dampened market confidence.
According to EBL Securities' daily market review, the market resumed trading on a lacklustre note after the Durga Puja holidays, as concerns over corporate earnings and dividend declarations weighed on investor sentiment. Rising global energy prices amid renewed escalation of conflicts in the Middle East further dampened confidence.
The brokerage said investors largely remained on the sidelines amid a lack of fresh positive catalysts, keeping the market under sustained selling pressure throughout the session.
Sheltech Brokerage Limited said the market initially witnessed strong buying interest, pushing the benchmark index to an intraday high of 5,477 points. However, selling pressure emerged shortly afterwards and intensified towards the close, dragging the index to an intraday low of 5,432 points.
The brokerage attributed the downturn to uncertainty surrounding the earnings and dividend announcement season, alongside heightened geopolitical tensions in the Middle East and Europe.
Despite the broader market weakness, the banking sector emerged as the day's standout performer, posting a 1% gain. Bargain hunting in banking shares helped the sector outperform most others, although late-session selling continued to weigh on the broader market, according to the EBL Securities.
Banking stocks also dominated trading activity, accounting for 23.1% of total turnover. Textile stocks followed with 15.4%, while pharmaceutical shares contributed 12%.
Most sectors ended in negative territory. Jute stocks recorded the steepest sectoral decline, falling 3.7%, followed by cement at 3.6% and ceramics at 2.5%. Services and telecommunications posted marginal gains of 0.2% and 0.1%, respectively.
BRAC Bank, City Bank, Matin Spinning, Prime Bank and Asiatic Laboratories were among the most actively traded stocks.
Bangladesh National Insurance led the gainers, rising 9.28%, followed by CAPM IBBL Mutual Fund, up 8.66%, and Prime Finance, which gained 8%. Libra Infusion and Peoples Leasing advanced 7.48% and 6.25%, respectively.
On the losing side, Aramit Cement fell 9.09%, while Desh Garments dropped 8.93%. BBS declined 7.76%, followed by Usmania Glass, down 6.49%, and Shepherd Industries, which lost 6.48%.
The bearish trend also extended to the Chittagong Stock Exchange, where the CSCX index fell 11 points to 8,963 and the CASPI index declined 22 points to close at 14,581.